The Personal Finance Society (PFS) has restated its warning to regulators that excessively high professional indemnity (PI) insurance premiums are crippling advisers' ability to work with defined benefit (DB) transfers.
According to the adviser body, advice firms have reported PI premium rising as high as 500% and has stopped them from working with clients on DB transfers. Since the Financial Conduct Authority (FCA) lifted the Financial Ombudsman Service (FOS) compensation limit from £150,000 to £350,000 in April, the PFS has been contacted by several pension transfer specialists struggling to afford PI insurance. PFS chief executive Keith Richards (pictured) said soaring premiums were a direct result of the FCA's and HM Treasury's changes to the compensation body. "The raising of the FOS compensa...
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